Who we are
AFC invests in aviation businesses, financing new aircraft and infrastructure critical to the development of global transportation. Established in 2012, AFC is a complementary partnership between institutional asset managers, commercial and investment banks. We founded the company with the view that the aviation industry requires permanent capital managed to minimize the financial impact of unpredictable values of aircraft and engine technology. AFC provides new sources of capital at lower cost in innovative financing structures that give investors more direct access to aircraft and the airlines that manage them. We provide airlines and other owners with unique sources of capital in flexible structures while minimizing residual value risks.
Through our two sister companies in New York and Ireland, our team works to source opportunities and invests capital along side of our institutional investment partners. With deep roots in the U.S. capital markets and fixed income communities, AFC has the capability of providing airlines with substantial investment in structures that provide great flexibility, debt and equity. Through our Irish company, Aviation Finance Company Limited, we deliver professional asset management services and innovative financing structures to both airline partners and investors.
AFC conducts its business with oversight from the Managing Partners. We value governance, disciplined organization and management. Our team periodically reviews the Company’s corporate governance principles and current practices with respect to our own investments and those of our customers. AFC Partners recognize that the long-term interests of AFC advance when we respond to the concerns of communities, customers, employees, investors, public officials, shareholders and suppliers.
We value open, honest communication between our management and the constituents we serve and believe this builds long-term strength and sustainability in financial services. Accountability to the individuals and institutions we serve demands that we apply sound principles of corporate governance in managing our organization. Good governance allows us to gain and to maintain the trust of our clients, of investors and of other stakeholders. It’s also a key indicator of corporate performance and the future strength of our company.
The Air Transport Industry (“ATI”) is the primary global people mover and a major freight transporter. The industry is fundamentally driven by broad economic trends, with a strong regulatory overlay with respect to safety and performance guidelines. While ATI has broadly grown over the past 30 years, positively impacted by emerging economies, it has also suffered from the terrorist attacks on the United States in 2001, the general economic collapse of 2008 and subsequent slow growth and recession in some developed economies. Historically passenger air travel has grown at a rate of 1.5–2.0 times real GDP growth while cargo air has grown at rates slightly more than 2.0 times GDP growth. In selected economies the growth has been greater at 5.0 times GDP growth.
Against these evolving dynamics the major aircraft producers have developed “new generation” aircraft with far more fuel-efficient engines, aircraft design and construction techniques. These new generation aircraft are replacing the existing global fleet, creating a more efficient cost structure and competitive environment, a trend that will continue for the foreseeable future.
The acquisition of aircraft, engines and maintenance contracts requires specialized areas of finance and substantial long term capital commitment that even healthy airlines prefer to outsource. This creates the opportunity for structured, long term investment opportunities yielding stable fixed returns without the risk of aircraft ownership.
AFC Synergy Press Release